‘Surge in gold demand’ following base rate cuts and how Diversification is Key

Demand for gold has risen markedly since the Bank of England’s cut in base rates to 0.25% earlier this month. This is according to the Royal Mint, which revealed it saw a 25% surge in transactions on its bullion website during the week of the cut. The Royal Mint said it also witnessed a 50% climb in gold bar and coin sales compared with the week before. In sterling terms, the price of gold has so far increased by 45% in 2016.

However, do not put all your eggs in one basket.  The last ten years have been a volatile and tumultuous ride for investors, with natural disasters, geopolitical conflicts and a major financial crisis.

Yet despite these difficulties, the worst-performing asset class was cash and this is set to continue for the long term. Meanwhile, a well-diversified portfolio including stocks, bonds and some other asset classes returned 6.8% per year over this ten year time period. A diversified portfolio also provides a much smoother ride for investors than investing in just equities.

Contact us now for a free initial consultation, to review your existing pensions and savings, and hopefully we can assist you in gaining a 6.8% return per year from a well-diversified portfolio.

 

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